Table 6

IV Estimations

	Instrumenting with Predicted Ethnic Group Size from Gravity Model and In-Marriage Rates in the United Kingdom in 1991			Instrumenting with Predicted Ethnic Group Size from Gravity Model and Average of In-Marriage Rates in the United Kingdom in 1991 and Spain in 2011
	First Stage for Size (1)	First Stage for Isolation (2)	Second Stage (3)	First Stage for Size (4)	First Stage for Isolation (5)	Second Stage (6)
Panel A: Baseline Estimation without Controls
Instrument for size	0.648***	−0.118		0.622***	−0.023
	(0.064)	(0.116)		(0.066)	(0.121)
Instrument for isolation	−0.135*	0.540***		−0.142*	0.490***
	(0.076)	(0.097)		(0.075)	(0.089)
F-statistic	52.2	17.4		48.2	18.9
Inverse of log ethnic group size			0.459***			0.469***
			(0.130)			(0.140)
Isolation of ethnic group			0.316**			0.419***
			(0.125)			(0.119)
Exogeneity test p-value			0.140			0.023
Panel B: Including Controls for Ethnic Group’s Traits
Instrument for size	0.503***	−0.081		0.496***	−0.054
	(0.077)	(0.067)		(0.079)	(0.064)
Instrument for isolation	−0.077	0.358***		−0.078	0.313***
	(0.069)	(0.072)		(0.052)	(0.063)
F-statistic	21.7	12.7		23.2	12.8
Inverse of log ethnic group size			0.294**			0.342**
			(0.143)			(0.174)
Isolation of ethnic group			0.484***			0.728***
			(0.153)			(0.209)
Exogeneity test p-value			0.237			0.006

Notes: See Table 1. Estimations describe the IV relationship between industry concentration for ethnic entrepreneurship and ethnic group size and in-marriage isolation. Instruments are the predicted ethnic group size from gravity model and in-marriage rates in U.K. 1991 or an average of the in-marriage rates in U.K. 1991 and Spain 2011. The null hypothesis in Wu-Hausman exogeneity tests is that the instrumented regressors are exogenous. Regressions have 130 and 129 observations, respectively, as U.K. and Spain are excluded when used in the instrument. Regressions cluster standard errors by U.K. 1991 data set ethnic groups.